BSG Resources (BSGR)... said on Wednesday it has initiated an arbitration against the government of Guinea over its decision to revoke BSGR's miningrights in the country.

The Guinean government cancelled mining rights held by VBG, a joint venture between BSGR and miner Vale, over two iron ore deposits last month, after a government panel charged with reviewing the West African nation's mining deals said in a report it had found BSGR obtained the rights through "corruption" in 2008.

BSGR has repeatedly denied any wrongdoing.

"BSGR is seeking the restitution of its mining titles and agreements as well as damages arising out of the revocation of these interests," the company said in a statement.